Commerce

What is cost?

• Cost is the monetary value that a company spends in order to produce goods and services.

• Cost is how much a person needs to spend.

• Choosing the next best alternative by sacrificing another item.

• Cost is the monetary value that we earn by doing a job.

What is Opportunity Cost?

• Is the next best alternative given up by choosing another item.

• Is choosing the best alternative item.

What is Division of Labour?

• Is when people or an organization concentrate on what the do best.

• When a person tries to fulfill all his needs by his own efforts.

• Is when a whole task is broken into a number of small repetitive tasks.

What is Demand?(Explain full form)

What is the law of demand?

(Choose two answers)

• When the demand decreases, price increases.

• When the demand increases, supply decreases

• When the demand decreases, supply increases.

• When the demand increases, price decreases

What is the law of supply?

• When the supply increases, the price increases.

• When the supply decreases, the price decreases.

• When the supply increases, the demand increases.

• When the supply increases, the price decreases.

Is demand and price inversely related or have a negative relationship?

• True

• False

Does Supply and price have a positive relationship?

• True

• False

What is Market Equilibrium?

• Is a person or an organization which keeps in track of the amount demanded and supplied.

• Is the price.

• Is the total amount a person has spent of money

• Is created when supply and demand curve intersects.

What is production?

• Is when a business performs a trading activity.

• Is the organized activity of transforming the resources into finished products in the form of goods and services.

• Is the exchange of raw materials between two people, businesses or organizations.

• Is when a person concentrates in what they do best.

• Is the organized activity of transforming the resources into finished products in the form raw materials.